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California Legislation to Combat “Hot Fuels” and Unfair Gasoline Prices
In this week’s Democratic weekly radio address, Assemblymembers Mike Davis (D-Los Angeles) and Anna Caballero (D-Salinas) discuss legislation that would investigate “hot fuels,” a phenomenon where fuel is sold under the assumption that it is a lower temperature than it really is, distorting the price in the process.
You can listen in English or in Spanish.
Hello, this is Assemblyman Mike Davis.
Oil companies have enjoyed unprecedented prosperity in recent years.
But skyrocketing gas prices hit lower and middle income families in Californians hard.
If you ask an oil executive how gas prices are calculated, the answer will be vague at best.
Democrats in the California Assembly are deeply troubled by this unaccountable system.
That’s why we’ve introduced a package of bills to stop Big Oil from squeezing consumers for record prices.
My bill addresses a phenomenon known as ‘hot fuel,’ where fuel is sold under the assumption that it is at a lower temperature than it really is.
But because liquids expand under heat – potentially at the gas pump – the fuel’s prices may be inflated for both local gas stations and consumers.
So we’re going to study the matter, and if your hard-earned money is actually going up in hot air, we’ll put a stop to it.
The package also includes legislation that would require refineries to remain operational so oil companies can’t manipulate prices by playing games with refinery shutdowns.
And we require the California Energy Commission to analyze and report on oil supply, demand, and prices.
Statewide, the average cost per gallon of gas in May was $3.48, and in some regions reached as high as $3.69.
For our economy to continue to prosper, and our family budgets to stay intact, oil companies must be held accountable for their pricing schemes.
This package of bills is an important first step to address this growing problem.
This is Assemblyman Mike Davis. Thanks for listening.
Spanish:
Que tal, les habla la asambleísta Anna Caballero.
Las compañías de petróleo han alcanzado ganancias inauditas en los últimos años. Y las familias trabajadoras están pagando el precio
Los asambleístas demócratas de California están profundamente molestos por este sistema irresponsable.
Es por eso que hemos propuesto un paquete de legislaciones que pondrá un alto a las ganancias excesivas por parte de las corporaciones del petróleo a costa de los consumidores.
Uno de los proyectos de ley ataca el fenómeno conocido como “el combustible caliente,”' donde el combustible es vendido bajo la suposición que está a una temperatura más baja de la cual realmente esta. Eso infla el precio del combustible tanto para las estaciones gasolineras como a los consumidores.
Así su dinero ganado con mucho esfuerzo puede estar saliendo rápidamente por la ventana.
El proyecto de ley también requerirá que las refinerías permanezcan abiertas para que las compañías de petróleo no puedan manipular los precios jugando con los cierres de las refinerías.
Y requerimos a la Comisión de Energía de California que analice e informe sobre el suministro de petróleo, la demanda, y los precios.
Las familias a lo largo y ancho de California pagan más y más por la gasolina.
Las compañías petroleras deben sufrir las consecuencias por la forma en que fijan el costo de la gasolina. Si no lo hacen, nuestra economía sufrirá, y las familias se verán afectadas.
Este paquete de leyes es un importante primer paso para tratar con este gran problema.
Gracias por su atención. Les habló la asambleísta Anna Caballero
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